- The Trump administration halted funding for the $1B Green and Resilient Retrofit Program, which helps preserve affordable housing.
- The program, passed by Congress in 2022, has already funded upgrades for at least 25K affordable housing units.
- The freeze jeopardizes ongoing and upcoming projects, including crucial heating, cooling, insulation, and energy efficiency upgrades.
- About 24 projects are expected to receive scheduled funding, but others are now officially in funding limbo.
The Trump administration has officially halted funding for the $1B Green and Resilient Retrofit Program, leaving many projects aimed at preserving affordable housing in limbo, per GlobeSt.
Federal Housing Freeze
Federal funding for the $1B Green and Resilient Retrofit Program, which helps preserve and upgrade affordable housing, is completely frozen, according to an Associated Press report.
Originally passed by Congress in 2022, the Green and Resilient Retrofit Program is seen by many as a vital part of the effort to address the nation’s housing crisis.
The program provides grants and loans for energy-efficient improvements to affordable housing units, including upgrades to heating and cooling systems, roof repairs, and new insulation and windows. Projects funded by the program must maintain affordable housing units for at least 25 years.
Current Projects on Hold
The halt in federal funding will undoubtedly stall ongoing projects. Some projects that have already received funding will continue, but many more are now in limbo.
An internal HUD document, obtained by the AP, revealed that the Department of Government Efficiency (DOGE) is responsible for terminating the affordable housing preservation program, leaving its future uncertain.
Mike Essian, Vice President of American Community Developers Inc., stressed the importance of the program for affordable housing success. “Projects will fail and these are projects that are already difficult to finance,” Essian explained.
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At-Risk Projects
One of the notable projects potentially impacted by the freeze is the 170-unit Smith Tower Apartments in Vancouver, Washington. The building received a $10M award to install a building-wide sprinkler system, a necessary upgrade for long-term livability.
However, without continued funding, the project’s future upgrades—such as enhancing heating and cooling systems—could be jeopardized, potentially limiting the building’s viability for another 60 years.
Funding Uncertain
The Green and Resilient Retrofit Program provided crucial funding to projects in 42 states, the District of Columbia, and Puerto Rico, making its cancellation a blow to national affordable housing preservation efforts.
According to AP, roughly two dozen projects are still expected to receive funding, but many other developments are now up in the air.
